If a Cinnaholic franchisee fails to comply with standards and procedures, is that considered a curable default?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3 of the Agreement is amended by adding the following sentences at the end of such Section: "Minnesota law provides franchisees with certain termination and non-renewal rights.
Minnesota Statutes Section 80C.14, subds. 3, 4 and 5 require, except in certain specified cases, that you be given 90 days notice of terminations (with 60 days to cure)."
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 42–50)
What This Means (2025 FDD)
Based on the 2025 Cinnaholic Franchise Disclosure Document addendum for Minnesota, franchisees are entitled to a notice of termination with a period to cure the default. Specifically, Minnesota Statutes Section 80C.14, subds. 3, 4 and 5 require that Cinnaholic franchisees be given 90 days' notice of termination, with 60 days to cure the issue, except in certain specified cases.
This Minnesota addendum indicates that Cinnaholic franchisees in Minnesota have specific rights regarding termination and non-renewal, providing them with a period to correct any issues before the franchise is terminated. This protection is more favorable for the franchisee compared to franchise agreements that allow for immediate termination upon default.
Prospective Cinnaholic franchisees should be aware of these state-specific protections and how they may differ from the standard franchise agreement. Franchisees operating outside of Minnesota may not be entitled to the same cure period, so it's important to understand the specific laws and regulations in their operating state.